Stanton Inc

question 91

Multiple Choice

Stanton Inc.is considering the purchase of a new machine which will reduce manufacturing costs by $5,000 annually and increase earnings before depreciation and taxes by $6,000 annually.Stanton will use the MACRS method to depreciate the machine,and it expects to sell the machine at the end of its 5-year operating life for $10,000 before taxes.Stanton's marginal tax rate is 40 percent,and it uses a 9 percent required rate of return to evaluate projects of this type.If the machine's cost is $40,000,what is the project's NPV?

• A) $1,014
• B) $2,292
• C) $7,550
• D) $817
• E) $5,040

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Definitions:

Sociological Perspective

The viewpoint that looks at the broader social contexts in which people live and how these contexts influence people's lives.

Homophobia

An aversion or hostility towards homosexual people or homosexuality in general, often manifesting in discriminatory attitudes or behaviors.

Gender Socialization

The process by which individuals are taught and learn the cultural norms and expectations associated with their gender from a young age.

School Environments

The physical, social, and academic conditions and culture of a place of education, impacting student learning and wellbeing.